In a recent press release, New York PSC clearly stated that the electricity rates will be different for the heavy duty electricity users. This clearly indicates that for the cryptocurrency minors, the electricity rates will be different. At the same point in time, it also stated that it will do everything in its power to help the existing electricity consumers. This clearly states that the department is in favor of cryptocurrency miners setting up their operations in the area.
Better negotiation power:
According to the press release, the cryptocurrency miners will be directly able to negotiate with the main civil authorities. This will ensure that depending on the scale of their operation, they are able to get a suitable rate. In addition to that, all will be dependent on the size of the facility which they want to establish. Depending on that, the electricity consumption will also change.
In order to qualify for the negotiation, the cryptocurrency minors should consume at least 300KW of power. The density should be 250kWh per square foot per year. Only when this threshold is crossed, the cryptocurrency miners will be directly able to negotiate. Also, it is up to the cryptocurrency miners to provide proof that they will indeed need that much amount of power.
Existing customers will not be impacted:
In the press release itself, the department made it amply clear that the existing customers will not be impacted in any way. This clearly means that even the existing cryptocurrency miners who are set up in the idea will not be impacted by this development. This simply ensures that they will be able to continue with their operations under the current circumstances.
Also, the existing customers will not have to pay any kind of premium as well. They will be able to continue with the same rate which they have been paying up till now.
The city of New York is trying to attract more and more cryptocurrency miners. They hope that the cryptocurrency miners will be able to generate employment in the state. This is the reason why they are actively monitoring the establishments who are opting for cryptocurrency mining operations. This is a step in the right direction. At the same point in time, they are ensuring that the normal consumers are not inconvenienced due to the cryptocurrency miners. It remains to be seen whether this move actually attracts more cryptocurrency miners to the state or whether it drives them away. Up until now, the impact of the move is slated to be neutral.
